Lender here. I'm willing to sit down and work with people getting their shit together when things get difficult, and can usually put together a plan to get out of these situations over time.

We foreclose quickly when people do not respond to letters/calls/etc... bury their heads in the dirt, and act like we don't exist and think the problem will go away. If you fail to communicate, foreclosure comes swiftly.

COMMUNICATE WITH YOUR BANKER OR WE WILL NOT CARE ABOUT YOU AND FORECLOSE ASAP AS TO NOT GET REAMED BY OUR BOARD OF DIRECTORS! I hate paperwork.

Call and say you received the letter, let them know what is going in and what you plan to do, or if you need financial advice or if you think you will not be able to ever afford the payments, refinance options, temporary interest only pmts. If the situation is hopeless, then the bank can help you transition.

They make money off interest, so they also have to consider the risk of the loan being payed off early. Someone without any debt will be more likely to pay it off early and they tend to increase the interest and fees.

I am aware of that, I am just questioning as to why OP finds this as a joke. You will have a low credit score if you borrow to often, which means you aren't good with your money making you a risk. Whereas if you rarely borrow it means you're good with your money and you're not a risk.

Say you have a friend who is always broke and always borrowing money from you. Then you have a friend who never borrows from you or if he does he pays you back ASAP. Who are you more inclined to lend to? That's the way banks work and why taking out loans lowers your credit score. You may not make a ton of money from the guy that rarely borrows, but you know you're going to get your money back and a little bit of change.